Oil ends May with first monthly losses in 2011

NEW YORK. June 1. KAZINFORM Crude prices surged on the last trading day in May, but still posting the first monthly losses since the beginning of 2011 as world economic recovery showed slowdown signs.

According to Xinhua, U.S. crude benchmark on Tuesday gained 2.11 dollars, or 2.10 percent, to settle at 102.70 dollars a barrel. For the month, it slipped 9.53 percent, ending the four straight months of gains.

The London Brent crude rose 2.05 dollars, or 1.79 percent, to close at 116.73 dollars a barrel. For the month, it fell 6.71 percent, also the first losses in five months.

Oil prices saw dramatic ups and downs in May, with U.S. benchmark seesawing from 113.52 dollars a barrel to 96.91 dollars a barrel and the Brent crude fluctuating between 125.12 dollars and 109.13 dollars.

Exactly as the Goldman Sachs warned in mid-April, from the very beginning of May, the oil started the falling path. For the first week, crude prices posted the record weekly losses since priced in dollar.

To the sharp fall, the death of al-Qaida leader Osama bin Laden made a contribution as investors revaluated the oil risks amid the situation in the oil-rich Middle East.

"Traders thought the prices were too high, so they chose to exit from commodities markets and to rush into safer areas," said Raymond Carbone, a senior oil trader at New York Merchantile Exchange.

To learn more see http://news.xinhuanet.com/english2010/business/2011-06/01/c_13905268.htm